Sabra Health Care REIT Stays in Good Shape
All we can say is that Sabra Health Care REIT is fortunate to have gotten out of its joint venture with TPG and the former Enlivant portfolio. TPG bought those assets at a very low per-unit price, and Sabra bought its 49% interest from them at a very high per-unit price, more than double TPG’s price. While we understood the need to diversify Sabra’s portfolio into more private pay seniors housing, these were not the right assets. But they were available at the time, and if it worked out Sabra had an option for the remaining 51%. Even without the pandemic, we do not believe the value would have climbed to merit buying the other 51%. The buildings were small, on the old side and were... Read More »
Chartwell Retirement Residences Sees Census Gains
Chartwell Retirement Residences, the largest operator of seniors housing in Canada, serving more than 25,000 residents in four provinces, posted a net loss in the second quarter, but same-community occupancy increased by 180 basis points year over year to 79.2%. The operating margin at the facility level increased by 120 basis points year over year to 32.7%. The loss in the quarter was mostly due to higher finance costs, higher G&A expense and negative changes in fair values of financial instruments, so not the operations. It is interesting that of the large REITs with major operations in Canada, Ventas has the best occupancy rate at 94.3% in the second quarter, up 90 basis points year... Read More »
National Health Investors Sees Improvements
National Health Investors turned in a mixed second quarter but appears to see more tailwinds than headwinds as it approaches 2024. They are not out of the woods with some of their providers yet, and deferrals are still a bit of a problem, but census levels are rising, margins are increasing and they are seeing some coverage ratios increasing. Investors, however, focused on a slight decrease in earnings guidance for the rest of the year and rent deferrals, sending the share price down by 6.4% after the release. The REIT’s small SHOP portfolio (15 properties) posted a nice $200,000 increase in NOI from the first quarter to $2.1 million. The operating margin increased by 170 basis points from... Read More »
NIC’s Brian Jurutka Lands at IMA Financial Group
The former President and CEO of NIC, Brian Jurutka, will be taking his seniors housing knowledge and talents to IMA Financial Group, a Denver-based insurance brokerage firm specializing in risk management, insurance, wholesale brokerage and wealth management. IMA is employee owned with more than 2,000 associates across the United States. Jurutka has joined as Vice President of seniors housing with the mandate to grow IMA’s presence in seniors housing. His rolodex will certainly help him with that task. We enjoyed working with him over the years when he was CEO of NIC and wish him continued success in our industry. Read More »
Brookdale Senior Living Projects Growth
Brookdale Senior Living released its second quarter 2023 earnings and seemed to gush with optimism. But remember the old saying, under promise and over perform. While there was some positive news in the quarter, they still have a long way to go. The first big news was that Adjusted EBITDA increased by 60.5% over the year-ago-quarter to $81.4 million. The bad news was that this was an 8% decline from the first quarter when it was $88.6 million. Revenues increased year over year by 10.9% while facility operating expenses increased by only 3.4%. In this inflationary environment that is quite good. The company is now cash flow positive after lease and interest expense, but before capex. Other... Read More »Schedule a demo
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